The Client and Its Challenge
A service company faced a potentially devastating loss when a fire destroyed its entire computer infrastructure. The company, a placement service for temporary professionals, lost critical data, including all of its contact information for clients and prospects in addition to its marketing material. Because the company was entirely electronically driven, the visual impact of the fire was minimal. Consequently, the insurance carrier did not recognize the full extent of the damage and offered a settlement that did not sufficiently cover the client’s loss.

The Risk Consulting Solution
While the client submitted a claim of $2 million, the insurer offered only $600,000. To settle the dispute and attain a higher settlement, the client employed our Claims Accounting and Preparation Services (CAPS) practice. The CAPS team thoroughly evaluated the claim and the insurance company’s position and quantified the loss accordingly. After demonstrating to the insurer that the cost of the loss was much greater than the insurer originally assessed, CAPS effectively negotiated with the insurer’s appraiser to create an agreeable and favorable settlement.

Results
CAPS successfully illustrated that the insurer’s original recovery package insufficiently covered the damage from the fire. As a result, the company received a substantially higher settlement of $1.6 million from its insurer. The client was able to fully recover from the potentially crippling loss of data and resume operations.